If you could do one thing differently when purchasing DVC what would it be?

[MouseOfCards]

That's a good point and total cost does mean a great deal to me as well. What I actually did was found two listings for SSR for 150 pts each and called the broker and asked if, since they were from the same seller, could I buy them both under the same closing, and I was allowed to albeit with the closing costs calculated at 300 pts. Then once the deed was recorded I called Disney direct and added 25 points. So, I have 325 pts at SSR, but it's 150+150+25, so I think I did what you were suggesting, and probably went the most economical route. Now, ideally, if I could have found the same seller with same UY but 1 available at SSR and 1 at BLT, and done the same combined closing, then that would have been my perfect scenario, but that seems an unlikely scenario.

What a great strategy. Congratulations!

BTW, for the OP, I would have purchased sooner.

 

[Pace]

I should have done more research. My first contract was not loaded (but not stripped either). I learned the value of a loaded contract as time went on and got my second one fully loaded. That was the one mistake I made.

Why is it a mistake to buy a contract that's not loaded? If you get a good price on it, how is that bad?

We did ok. We bought a weirdly loaded BCV contract (2015 points borrowed into 2014, very few 2015 points avail all 2016 points). But, we got a very great deal at $84/point.

Then we bought a Poly fixed week and we are very happy with that.

The mistake I almost made with research is I originally got in my head that BCV and BWV were "boutique" resorts where if you bought there the only way to maximize value would be to stay there. It's very easy to get that idea reading the boards. So. I had in my head that these resorts were only technical exchanges; you could theoretically book in and out at 7 months but not in any sort of practical way.

So. I limited my search to resorts with better tradeability at 7 months and decided that AKV was the best mix of price and contract length for us. So I started looking for an AKV contract. I was operating on the "buy where you don't mind staying" philosophy.

But. Storm-A-Long Bay. I kept coming back to that. Not only for the kids but it's one of the few pools at WDW with a true deep end area for adults.

So. I took another look and the weirdly loaded contract jumped out at me. I discussed with DW and we decided to underbid and see what would happen. They accepted our offer.

We still very much like AKV but find we can book it at 7 months enough to stay there.

As I've researched more I've become even more of a believer in "buy where you want to stay". Years ago, that wasn't as much the case. As time moved on, pressure at the near park resorts has only increased, as has pressure everywhere during Fall Frenzy.

If past is prologue, buying where you want to stay will become even more important as time moves on.

We did ok. We bought a weirdly loaded BCV contract (2015 points borrowed into 2014, very few 2015 points avail all 2016 points). But, we got a very great deal at $84/point.

Then we bought a Poly fixed week and we are very happy with that.

The mistake I almost made with research is I originally got in my head that BCV and BWV were "boutique" resorts where if you bought there the only way to maximize value would be to stay there. It's very easy to get that idea reading the boards. So. I had in my head that these resorts were only technical exchanges; you could theoretically book in and out at 7 months but not in any sort of practical way.

So. I limited my search to resorts with better tradeability at 7 months and decided that AKV was the best mix of price and contract length for us. So I started looking for an AKV contract. I was operating on the "buy where you don't mind staying" philosophy.

But. Storm-A-Long Bay. I kept coming back to that. Not only for the kids but it's one of the few pools at WDW with a true deep end area for adults.

So. I took another look and the weirdly loaded contract jumped out at me. I discussed with DW and we decided to underbid and see what would happen. They accepted our offer.

We still very much like AKV but find we can book it at 7 months enough to stay there.

As I've researched more I've become even more of a believer in "buy where you want to stay". Years ago, that wasn't as much the case. As time moved on, pressure at the near park resorts has only increased, as has pressure everywhere during Fall Frenzy.

If past is prologue, buying where you want to stay will become even more important as time moves on.

Which resorts are difficult to get at 7 months?

 

[Dean]

Why is it a mistake to buy a contract that's not loaded? If you get a good price on it, how is that bad?

If it's a comparable price there's nothing wrong with it. However historically the prices haven't reflected the value of the lost points. The swing between a fully loaded and fully stripped contract is maybe $30 a point minus the dues one would have to pay. So realistically a fully stripped contract would have to be $15-$20 a point less AND one would not have to pa dues for the current or upcoming UY. Remember dues are charged on a calendar year basis. As an example, Dec UY dues coming in Jan are actually for 11 months of the 2016 points.

Here's a concrete example using round numbers. Let's assume 100 points and a price of $100 a point for an Oct UY with all 2015 points banked and all 2016 & 2017 points. Assume dues at $6 a point for ease of discussion. Let's further assume you reimburse for the 2016 points and pay the 2017 dues (overpayment) but don't pay any dues on the banked points (standard and will compensate for the overpayment. So around $11600 with $400 for closing and dues including 2017. To come out "even" in this extreme example, one would need to get the stripped contract at roughly $80 a point with no fees reimbursement AND seller prepaying the 2017 dues. Somewhere in the range of $8400, $3200 less.

That's the financial aspect but there may be other factors. If one is looking for something specific or hard to fine, the "extra" may be worth it in some cases. I just feel it's important to understand the financial side to make an informed decision.

 

[skier_pete]

If it's a comparable price there's nothing wrong with it. However historically the prices haven't reflected the value of the lost points. The swing between a fully loaded and fully stripped contract is maybe $30 a point minus the dues one would have to pay. So realistically a fully stripped contract would have to be $15-$20 a point less AND one would not have to pa dues for the current or upcoming UY. Remember dues are charged on a calendar year basis. As an example, Dec UY dues coming in Jan are actually for 11 months of the 2016 points.

Here's a concrete example using round numbers. Let's assume 100 points and a price of $100 a point for an Oct UY with all 2015 points banked and all 2016 & 2017 points. Assume dues at $6 a point for ease of discussion. Let's further assume you reimburse for the 2016 points and pay the 2017 dues (overpayment) but don't pay any dues on the banked points (standard and will compensate for the overpayment. So around $11600 with $400 for closing and dues including 2017. To come out "even" in this extreme example, one would need to get the stripped contract at roughly $80 a point with no fees reimbursement AND seller prepaying the 2017 dues. Somewhere in the range of $8400, $3200 less.

That's the financial aspect but there may be other factors. If one is looking for something specific or hard to fine, the "extra" may be worth it in some cases. I just feel it's important to understand the financial side to make an informed decision.

@Dean - it took me a while to get what you are saying - but I think I do. Basically in one contract you have 3 years worth of points (Banked 2015, 2016 and 2017) and in the other contract all those points are missing. Therefore the cost to you should be about $3,200 less with the missing points - or roughly $1000 less for every year worth of points you don't get...correct?

This isn't far off from what I was thinking - for every year of points missing on a contract - I was figuring you should be paying $8 per point less (depending on MFs). You are saying a little more than that - but I think it's in the ballpark.

Which resorts are difficult to get at 7 months?

There are plenty of threads on this - but in short the smaller resorts that are in preferred locations. The order of hardest to easiest is essentially this (note Vero, HHI and Aulani aren't included in this):

VGC - VGF - BCV - WLV - BLT - BWV -(Poly?) - AKV - OKW - SSR

Note I am not including room classes - just the resort in general. Order shifts somewhat depending on time of year - BWV moves up during F&W for instance. Poly is still TBD. So far its pretty easy to get at 7 months, but it is not fully sold or declared so it may change.

Hey - are we supposed to be using a new abbreviation for WLV? Any official designation for Boulder Ridge? BRV@WL (yuk!)

 

[Dean]

@Dean - it took me a while to get what you are saying - but I think I do. Basically in one contract you have 3 years worth of points (Banked 2015, 2016 and 2017) and in the other contract all those points are missing. Therefore the cost to you should be about $3,200 less with the missing points - or roughly $1000 less for every year worth of points you don't get...correct?

This isn't far off from what I was thinking - for every year of points missing on a contract - I was figuring you should be paying $8 per point less (depending on MFs). You are saying a little more than that - but I think it's in the ballpark.

The per point value is roughly $13-15 pp, I tend to discount the value of banked points. But one usually has to pay some fees on those points as well. $8 per point after fees is a good assumption, I usually use around $5 per point for banked points assuming there's enough time to use them.

 

[Pace]

If it's a comparable price there's nothing wrong with it. However historically the prices haven't reflected the value of the lost points. The swing between a fully loaded and fully stripped contract is maybe $30 a point minus the dues one would have to pay. So realistically a fully stripped contract would have to be $15-$20 a point less AND one would not have to pa dues for the current or upcoming UY. Remember dues are charged on a calendar year basis. As an example, Dec UY dues coming in Jan are actually for 11 months of the 2016 points.

Here's a concrete example using round numbers. Let's assume 100 points and a price of $100 a point for an Oct UY with all 2015 points banked and all 2016 & 2017 points. Assume dues at $6 a point for ease of discussion. Let's further assume you reimburse for the 2016 points and pay the 2017 dues (overpayment) but don't pay any dues on the banked points (standard and will compensate for the overpayment. So around $11600 with $400 for closing and dues including 2017. To come out "even" in this extreme example, one would need to get the stripped contract at roughly $80 a point with no fees reimbursement AND seller prepaying the 2017 dues. Somewhere in the range of $8400, $3200 less.

That's the financial aspect but there may be other factors. If one is looking for something specific or hard to fine, the "extra" may be worth it in some cases. I just feel it's important to understand the financial side to make an informed decision.

Thank you, Dean. Can you give me your opinion on the following? I am considering the following contract at BLT (Dec UY): 0/15, 0/16, 160/17, 160/18

 

[Dean]

Thank you, Dean. Can you give me your opinion on the following? I am considering the following contract at BLT (Dec UY): 0/15, 0/16, 160/17, 160/18

That's the issue, a stripped contract is more according than a loaded one. I don't follow contracts nearly as much as I used to but some that do believe it's more difficult to find a loaded contract now than a few years ago. Realistically you're looking at somewhere in the $106-$110 a point range, it will not be discounted anywhere near the lost value of the points no matter what we say here and if it was, DVC would certainly take it for other reasons. But there are other factors. Personally I enjoy the chase so if I were looking, I'd want to get it at rock bottom and take my chances on ROFR. But for many they just want to be done and move forward and not take too many chances on ROFR. And time is money as they say both the work spent and delays to start using it. IMO and within reason, I think the other factors are far more important than a few dollars per point between one contract and another. First and foremost are the 2 main questions of whether DVC is a good choice for that person and whether they can afford it which to me means pay cash with no consumer debt. If those 2 factors suggest one should move forward, then it's home resort, UY and general number of points as the next set of considerations. Then retail vs resale but almost always I'd suggest resale though there are a few exceptions for specialty situations but usually not based on size for an initial contract mostly because I think anyone who should buy should need more than 50 points in most cases. The price within a range is a minor component and can actually cause one to overpay due to the issue above. Paying more for a loaded contract is usually worth it assuming once can use the points or rent them. IMO people often buy more points for a stripped contract than a loaded one.

I tend to recommend avoiding small contracts (under 120-150) as the initial purchase and disagree with many on the idea of buying multiple smaller contracts unless one can do so for around the same price total which normally only is possible if one buys multiple smaller contracts from a single owner. The 160 is a good size contract to get started depending on how you plan to use it. If I were looking at that choice, I'd think $106-110 to be realistic with seller paying either closing and half the dues in Jan or all the dues and buyer paying closing. You might tweak it down to the low $100 but ROFR might be an issue and you likely would pay the 2017 dues and closing.

 

[hhoman]

My regret is not buying in a year earlier so I could have had the Grand Floridian as a home resort through disney. I currently have Grand Californian and the poly. I thought it would be nice if I had my two home resorts being the two "grand" resorts.

 

[DenLo]

Buy sooner with less points, with plans to take a Disney vacation every other year when working.

 

[Pace]

That's the issue, a stripped contract is more according than a loaded one. I don't follow contracts nearly as much as I used to but some that do believe it's more difficult to find a loaded contract now than a few years ago. Realistically you're looking at somewhere in the $106-$110 a point range, it will not be discounted anywhere near the lost value of the points no matter what we say here and if it was, DVC would certainly take it for other reasons. But there are other factors. Personally I enjoy the chase so if I were looking, I'd want to get it at rock bottom and take my chances on ROFR. But for many they just want to be done and move forward and not take too many chances on ROFR. And time is money as they say both the work spent and delays to start using it. IMO and within reason, I think the other factors are far more important than a few dollars per point between one contract and another. First and foremost are the 2 main questions of whether DVC is a good choice for that person and whether they can afford it which to me means pay cash with no consumer debt. If those 2 factors suggest one should move forward, then it's home resort, UY and general number of points as the next set of considerations. Then retail vs resale but almost always I'd suggest resale though there are a few exceptions for specialty situations but usually not based on size for an initial contract mostly because I think anyone who should buy should need more than 50 points in most cases. The price within a range is a minor component and can actually cause one to overpay due to the issue above. Paying more for a loaded contract is usually worth it assuming once can use the points or rent them. IMO people often buy more points for a stripped contract than a loaded one.

I tend to recommend avoiding small contracts (under 120-150) as the initial purchase and disagree with many on the idea of buying multiple smaller contracts unless one can do so for around the same price total which normally only is possible if one buys multiple smaller contracts from a single owner. The 160 is a good size contract to get started depending on how you plan to use it. If I were looking at that choice, I'd think $106-110 to be realistic with seller paying either closing and half the dues in Jan or all the dues and buyer paying closing. You might tweak it down to the low $100 but ROFR might be an issue and you likely would pay the 2017 dues and closing.

Thank you, Dean.

 

[Dean]

Thank you, Dean.

Sure, the more you know up front and the better you get past the emotions, the better choice you'll make. Common mistakes are buying too little, too much and the wrong home resort, esp the new and exciting one that's mostly available retail.

 

[Pace]

Sure, the more you know up front and the better you get past the emotions, the better choice you'll make. Common mistakes are buying too little, too much and the wrong home resort, esp the new and exciting one that's mostly available retail.[/QUOaA

Sure, the more you know up front and the better you get past the emotions, the better choice you'll make. Common mistakes are buying too little, too much and the wrong home resort, esp the new and exciting one that's mostly available retail.

Agreed. We have decided on BLT with a December UY and buying enough points for a trip every other year. So far, we've lost two contracts to ROFR and are in ROFR again now. Hopefully the 3rd contract is the charm.

 

[Dean]

Agreed. We have decided on BLT with a December UY and buying enough points for a trip every other year. So far, we've lost two contracts to ROFR and are in ROFR again now. Hopefully the 3rd contract is the charm.

Hopefully it works out but don't go up too much trying to force it through. IN this situation you may need a buffer in the number of points, where so or how much depends on the time of year and villa size you're targeting.

 

[Pace]

Hopefully it works out but don't go up too much trying to force it through. IN this situation you may need a buffer in the number of points, where so or how much depends on the time of year and villa size you're targeting.

Yes, we travel during peak times when it's most expensive. We'll limit our points and plan a trip every other year. So far, we've had contracts accepted in the $102-106 range, but they were taken by ROFR.

 

[Dean]

Yes, we travel during peak times when it's most expensive. We'll limit our points and plan a trip every other year. So far, we've had contracts accepted in the $102-106 range, but they were taken by ROFR.

Those who travel lower seasons and target smaller villas need more of a cushion than those who travel peak season for larger villas. Hopefully third time's a charm.

 

[DebbieB]

My only regret is not splitting my 250 points into 2 contracts, either 150/100 or 125/125. It would have given me more flexibility. I really considered buying some VGC points when it opened but didn't need more total points. I also regret that, considering how much VGC points are going for now.

 

[pmaurer74]

I would have bought sooner.

 

[FirstTimeDisneyVisit]

I wish I had know about the re sale market alot sooner !

 

[icydog]

I would have saved all my points and not sold them when DH died. Then I had to repurchase them when my head was on straight. I made a nice profit on all of my contracts, but what a hassle. Also, by selling and buying resale I lost a lot of benefits.

I wish I hadn't started with a March Use Year when I repurchased points again. There are so few sales in resale points for March. But my first resale contract was a Disney's Beach Club Villas with a March UY so now I'm stuck!

I would have only purchased BCV points and not bothered with the two OKW contracts I purchased. I have since added a new, large, loaded, BCV contract. I rent my points out and everyone wants to go to Disney's Beach Club Villas,

And yes, I did buy all of my resale contracts loaded with substantial banked points. At least I did that right.

So now I own 3 BCV contracts worth 775 points and 2 extended OKW contracts worth 400 points. I'm waiting for an OKW 25 point contract with DVC. I want it to make sure I have all my old benefits.

 

[Pace]

Those who travel lower seasons and target smaller villas need more of a cushion than those who travel peak season for larger villas. Hopefully third time's a charm.

Lost our 3rd contract to ROFR today. All three contracts were for BLT, Dec UY, two loaded and one stripped. Back in ROFR with 4th contract.